Webinar Recap: Stem’s Modular, Flexible Approach to Utility-scale Energy Storage

In Stem's recent webinar, our energy experts - Jake Berlin, VP of Integrated Storage Solutions, and Vishwas Deokar, Head of Product for Energy Storage Systems - explored the profound ways our utility-scale energy storage is helping integrate and future-proof energy storage projects. Our webinar on-demand is now available which provided a background of the current storage market, what we see happening in the industry, what it takes to blueprint an effective storage strategy, and a couple project highlights. This blog serves as a recap of their thought leading insights that elaborate on how Stem's approach to modular energy storage systems (ESS) is hardware- and technology- agnostic and, therefore, maximizes flexibility across the for our customers.

Market Outlook and Trends

The storage market continues to grow at an impressive rate, with Wood Mackenzie's projections showing a 14% compound annual growth rate through 2027, roughly compounded to 50% within three straight years from now. Other prognostications from industry leaders like Solar Energy International Association (SEIA) are estimating a sixfold increase in battery storage systems by 2030. Aurora Energy Research is estimating a 10x increase in installed battery capacity by 2035. Assuming these rates are directionally right alongside current initiatives to fix interconnection and transmission issues, this is undoubtedly a booming market.

Among the top storage market trends are, first , a deployment shift upwards from small generator interconnection agreements (SGIA) to large generator interconnection agreements (LGIA) and upwards into both power system levels. Second, both federal and state policy changes - from NERC CIP compliance to large penalties for non-compliance - are shifting with these project sizes and driving overall interest in storage. Third, technology trends like substantially lower storage costs and denser batteries make projects more attractive to investors in new locations. Fourth, financial viability is increasing with more storage value streams across wholesale markets, tolling agreement, and tax as well as utility incentive opportunities.

Blueprinting a Modular Energy Storage Strategy

While these trends provide new opportunities to push storage projects forward, the many components of designing, deploying, operating, and optimizing a successful battery storage system are complex - especially on a portfolio-scale basis across various markets. Typically, there are three main layers of the ESS solution stack: the ESS hardware, the energy management system (EMS), and the market participation and optimization. Stem's energy experts then dove into the important questions you need to consider at this stage and why it's important to work with the right partner for the most comprehensive end-to-end value stack.

At the ESS hardware level, collaborating with original equipment manufacturers (OEMs) and ESS integrations are two of the main puzzle pieces in blueprinting an effective ESS strategy. These affect everything from procurement, installation, commissioning, operation, and overall management of the project throughout its lifetime. Depending on the hardware you select or mix & match, there are many factors to consider for easy integration with the EMS and market participation and optimization - including total cost of ownership, performance guarantees, safety, bankability, and supply chain availability.

For projects 100MW and above, a modular ESS solution with standardized hardware sizes is most ideal due to their flexible integration together. With nearly 15 years of experience, Stem has expertise working with the top Li-ion battery / DC-block and PCS / inverter suppliers. Not only does this modular ESS approach open procurement optionality and configurability, but you can also get the best price and lead times, avoiding project delay risks.

The webinar concludes with exploring how a battery ESS controller's role facilitates interoperability. Standardizing on a truly hardware- and technology-agnostic controller is key since . With the right solution stack,

Key Takeaways

Knowing ESS hardware selection can be complex and finding the right hardware vendors are key, there are many things you should consider in a software and services partner. Y ou need a trusted advisor who has expertise across the entire solution stack, assuring that you are future-proofing and maximizing the return on your assets.

To learn more about Stem's Modular ESS Solutions, watch the webinar on-demand or contact [email protected].

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